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Quanta Services Inc (NYSE:PWR)
Beneish M-Score
-2.63 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Quanta Services Inc has a M-score of -2.63 suggests that the company is not a manipulator.

PWR' s 10-Year Beneish M-Score Range
Min: -3.43   Max: -1.18
Current: -2.63

-3.43
-1.18

During the past 13 years, the highest Beneish M-Score of Quanta Services Inc was -1.18. The lowest was -3.43. And the median was -2.56.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Quanta Services Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.819+0.528 * 0.9857+0.404 * 1.0924+0.892 * 1.0846+0.115 * 1.0843
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1476+4.679 * -0.0121-0.327 * 1.0522
=-2.63

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $1,502 Mil.
Revenue was 1762.574 + 1817.623 + 1645.132 + 1474.377 = $6,700 Mil.
Gross Profit was 272.071 + 302.843 + 273.053 + 241.284 = $1,089 Mil.
Total Current Assets was $2,214 Mil.
Total Assets was $5,827 Mil.
Property, Plant and Equipment(Net PPE) was $1,270 Mil.
Depreciation, Depletion and Amortization(DDA) was $170 Mil.
Selling, General & Admin. Expense(SGA) was $561 Mil.
Total Current Liabilities was $982 Mil.
Long-Term Debt was $5 Mil.
Net Income was 54.408 + 166.697 + 92.906 + 70.237 = $384 Mil.
Non Operating Income was 0.643 + 113.299 + -0.824 + -0.353 = $113 Mil.
Cash Flow from Operations was -60.533 + 201.492 + 83.192 + 117.776 = $342 Mil.
Accounts Receivable was $1,691 Mil.
Revenue was 1585.71 + 1673.342 + 1532.001 + 1386.162 = $6,177 Mil.
Gross Profit was 238.273 + 286.739 + 252 + 212.904 = $990 Mil.
Total Current Assets was $2,186 Mil.
Total Assets was $5,155 Mil.
Property, Plant and Equipment(Net PPE) was $1,072 Mil.
Depreciation, Depletion and Amortization(DDA) was $157 Mil.
Selling, General & Admin. Expense(SGA) was $450 Mil.
Total Current Liabilities was $830 Mil.
Long-Term Debt was $0 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1501.857 / 6699.706) / (1690.819 / 6177.215)
=0.2241676 / 0.27371866
=0.819

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(302.843 / 6177.215) / (272.071 / 6699.706)
=0.1602528 / 0.16258191
=0.9857

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2214.457 + 1269.656) / 5826.62) / (1 - (2185.665 + 1071.972) / 5154.818)
=0.40203531 / 0.36804035
=1.0924

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=6699.706 / 6177.215
=1.0846

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(156.984 / (156.984 + 1071.972)) / (169.554 / (169.554 + 1269.656))
=0.12773769 / 0.11781047
=1.0843

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(560.66 / 6699.706) / (450.467 / 6177.215)
=0.08368427 / 0.07292396
=1.1476

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((4.556 + 982.475) / 5826.62) / ((0 + 829.886) / 5154.818)
=0.16940027 / 0.1609923
=1.0522

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(384.248 - 112.765 - 341.927) / 5826.62
=-0.0121

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Quanta Services Inc has a M-score of -2.63 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Quanta Services Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.08221.06071.01131.0510.77640.9861.0181.08390.98010.9835
GMI 1.0910.80660.93270.91830.96120.9391.10121.21270.84560.9789
AQI 0.99590.92260.80662.01840.94380.94431.04110.99950.86741.0661
SGI 0.99011.13261.14511.2591.42330.87781.09381.15551.41171.1018
DEPI 0.92220.98661.01181.33160.83411.18470.9611.03630.98211.1101
SGAI 0.97960.95940.85011.05260.90391.15040.90090.94970.91191.0456
LVGI 0.98360.97021.00220.58280.60650.93690.76261.4421.03121.0509
TATA -0.1067-0.0342-0.0295-0.0244-0.024-0.0523-0.0186-0.01810.0386-0.027
M-score -2.87-2.58-2.57-1.78-2.34-2.89-2.31-2.37-2.08-2.53

Quanta Services Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.15931.07371.32510.98011.14810.90790.65870.98350.8191.0952
GMI 0.98340.93850.91670.84560.90380.89660.91310.97890.98571.0203
AQI 0.9820.95980.90720.86740.87530.8761.02231.06611.09241.0834
SGI 1.25291.30441.36131.41171.32171.2411.19671.10181.08461.1316
DEPI 1.05991.04161.02170.98210.98971.00711.03471.11011.08431.039
SGAI 0.86330.84750.83540.91190.98961.03881.03741.04561.14761.106
LVGI 1.43681.43151.3691.03121.00380.91810.87851.05091.05221.0655
TATA 0.00720.00780.03460.03940.02430.019-0.0084-0.027-0.01210.0045
M-score -2.20-2.26-1.87-2.08-2.04-2.34-2.66-2.53-2.63-2.24
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